constructive total loss
noun [ C or U ]
ukus( abbreviation CTL) INSURANCE
a situation in which insured property, especially a ship, is not completely destroyed, but so badly damaged that the cost of repairing it is greater than the value for which it is insured. It then becomes the property of the insurance company:
It must be considered whether repairs are financially feasible or whether the vessel should be considered a constructive total loss.
Compare
actual total loss